German IFO survey: Markets looking for very little improvement - TDS

Research Team at TDS notes that the markets are looking for very little improvement in the German IFO survey, with the headline rising from 111.0 to 111.3 for January.

Key Quotes

“But given the strength in the European survey data so far for the month, we see upside risks and look for a larger gain to 112 or more.”

“Italian media also reports that the Italian Constitutional Court will issue its decision on the electoral law (after failing to issue a ruling on Tuesday as expected). We expect it to cancel the part of the law that gives the winning party a bonus allocation of seats. The Court’s instructions around its ruling will help to dictate when new Italian elections might take place.”